The gold futures contract lost 0.18% on Friday, as it continued to fluctuate following Wednesday's decline of over 1.7%. The intraday volatility has been relatively low despite monthly jobs data release. And the stock market's rout didn't trigger any significant move in gold last week. Gold price is extending its consolidation, as we can see on the daily chart:
Gold is 0.3% lower this morning, as it is flucutating within its Friday's daily trading range. What about the other precious metals? Silver lost 0.61% on Friday and today it is 0.5% lower. Platinum gained 0.97% and today it is 0.7% lower. Palladium gained 0.93% on Friday and today it's 0.1% lower. So precious metals are slightly lower this morning.
Today we won't get any important economic data releases. Because of the Labor Day holiday, there will be no regular trading in the U.S. today.
Friday's Nonfarm Payrolls number has been as expected at +1,371 million. But the Unemployment Rate has declined to 8.4% vs. the expected 9.8%.
Where would the price of gold go after the monthly jobs data release? We've compiled the data since September of 2018, a 24-month-long period of time that contains of twenty four NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. We can see that the biggest 10-day advance after the NFP day was +6.6% in February of 2020 and the biggest decline was -12.7% in March of 2020. However, we've had an increased volatility following coronavirus fear then.
The following chart shows the average gold price path before and after the NFP releases for the past 24 months. The market was usually fluctuating for a week before advancing and closing 0.5% higher on the 10th day after the monthly Nonfarm Payrolls release.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:
Monday, September 7
- All Day, U.S. - Bank Holiday
Tuesday, September 8
- 6:00 a.m. U.S. - NFIB Small Business Index
- 10:00 a.m. U.S. - IBD/TIPP Economic Optimism
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Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
